Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Sep. 30, 2014 | Nov. 06, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'ADAT | ' |
Entity Registrant Name | 'AUTHENTIDATE HOLDING CORP | ' |
Entity Central Index Key | '0000885074 | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 41,601,712 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $1,369 | $1,084 |
Restricted cash | 256 | 256 |
Marketable securities | 210 | 210 |
Accounts receivable, net | 548 | 508 |
Inventory | 2,898 | 2,937 |
Prepaid expenses and other current assets | 416 | 259 |
Total current assets | 5,697 | 5,254 |
Property and equipment, net | 399 | 448 |
Other assets | ' | ' |
Licenses, net | 1,903 | 1,933 |
Other assets, net | 567 | 593 |
Total assets | 8,566 | 8,228 |
Current liabilities | ' | ' |
Accounts payable, accrued expenses and other liabilities | 2,991 | 2,806 |
Deferred revenue | 85 | 78 |
Total current liabilities | 3,076 | 2,884 |
Long-term deferred revenue | 120 | 126 |
Total liabilities | 3,196 | 3,010 |
Commitments and contingencies (Note 10) | ' | ' |
Shareholders' equity | ' | ' |
Preferred stock, $.10 par value; 5,000 shares authorized, Series B, 28 shares and Series D, 665 shares issued and outstanding on September 30, 2014 and June 30, 2014, respectively | 69 | 69 |
Common stock, $.001 par value; 100,000 shares authorized, 41,587 and 38,511 shares issued and outstanding on September 30, 2014 and June 30, 2014, respectively | 42 | 39 |
Additional paid-in capital | 203,853 | 201,492 |
Accumulated deficit | -198,594 | -196,382 |
Total shareholders' equity | 5,370 | 5,218 |
Total liabilities and shareholders' equity | $8,566 | $8,228 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Preferred stock, par value | $0.10 | $0.10 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 41,587,000 | 38,511,000 |
Common stock, shares outstanding | 41,587,000 | 38,511,000 |
Series B Redeemable Convertible Preferred Stock [Member] | ' | ' |
Preferred stock, shares issued | 28,000 | 28,000 |
Preferred stock, shares outstanding | 28,000 | 28,000 |
Series D Preferred Stock [Member] | ' | ' |
Preferred stock, shares issued | 665,000 | 665,000 |
Preferred stock, shares outstanding | 665,000 | 665,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues | ' | ' |
Hosted software services | $508 | $639 |
Telehealth products and services | 544 | 1,166 |
Total revenues | 1,052 | 1,805 |
Operating expenses | ' | ' |
Cost of revenues | 593 | 1,295 |
Selling, general and administrative | 2,011 | 1,862 |
Product development | 370 | 241 |
Depreciation and amortization | 189 | 186 |
Total operating expenses | 3,163 | 3,584 |
Operating loss | -2,111 | -1,779 |
Other expense, net | ' | -95 |
Net loss | -2,111 | -1,874 |
Basic and diluted loss per common share | ($0.06) | ($0.09) |
Comprehensive operations | ' | ' |
Net loss | -2,111 | -1,874 |
Comprehensive loss | ($2,111) | ($1,874) |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities | ' | ' |
Net loss | ($2,111) | ($1,874) |
Adjustments to reconcile net loss to net cash used by operating activities | ' | ' |
Amortization of debt discount and deferred financing costs | ' | 95 |
Depreciation and amortization | 189 | 186 |
Share-based compensation | 139 | 85 |
Warrants issued for services | 2 | 50 |
Restricted shares and stock options issued for services | 99 | 62 |
Changes in assets and liabilities | ' | ' |
Accounts receivable | -40 | -64 |
Inventory | 39 | 686 |
Prepaid expenses and other current assets | -157 | -24 |
Accounts payable, accrued expenses and other liabilities | 102 | -328 |
Deferred revenue | 1 | -39 |
Net cash used in operating activities | -1,737 | -1,165 |
Cash flows from investing activities | ' | ' |
Purchases of property and equipment | -29 | -7 |
Other intangible assets acquired | -55 | -22 |
Net cash used by investing activities | -84 | -29 |
Cash flows from financing activities | ' | ' |
Net proceeds from issuance of common stock and warrants | 2,124 | ' |
Dividends paid | -18 | -18 |
Net cash provided (used) by financing activities | 2,106 | -18 |
Net increase (decrease) in cash and cash equivalents | 285 | -1,212 |
Cash and cash equivalents, beginning of period | 1,084 | 3,505 |
Cash and cash equivalents, end of period | $1,369 | $2,293 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | |
Sep. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation | ' | |
1 | Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared by the company pursuant to the rules and regulations of the Securities and Exchange Commission and, in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The condensed consolidated financial statements include the accounts of Authentidate Holding Corp. (AHC) and its subsidiaries (collectively, the “company”). All significant intercompany transactions and balances have been eliminated in consolidation. The results of operations for the period ended September 30, 2014 are not necessarily indicative of the results to be expected for the full year. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements and notes thereto included in the company’s Form 10-K for the fiscal year ended June 30, 2014 and the corresponding Management’s Discussion and Analysis of Financial Condition and Results of Operations. | ||
Based on our business plan, we expect our existing resources, revenues generated from operations and proceeds received from the exercise of outstanding warrants (of which there can be no assurance) to satisfy our working capital requirements for at least the next twelve months. If necessary, management of the company believes that it can reduce operating expenses and/or raise additional equity or debt financing to satisfy its working capital requirements. However, no assurances can be given that we will be able to support our costs through revenues derived from operations or generate sufficient cash flow to satisfy our other obligations. In addition, there can be no assurance that the company will be successful in raising additional capital or securing financing when needed or on terms satisfactory to the company. |
Loss_Per_Share
Loss Per Share | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Loss Per Share | ' | ||||||||
2 | Loss Per Share | ||||||||
The following table sets forth the calculation of basic and diluted loss per share for the periods presented (in thousands, except per share data): | |||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Net loss | $ | (2,111 | ) | $ | (1,874 | ) | |||
Preferred stock dividends | (101 | ) | (100 | ) | |||||
Deemed preferred stock dividends | — | (1,074 | ) | ||||||
Net loss applicable to common shareholders | $ | (2,212 | ) | $ | (3,048 | ) | |||
Weighted average shares | 39,405 | 35,360 | |||||||
Basic and diluted loss per common share | $ | (0.06 | ) | $ | (0.09 | ) | |||
The deemed preferred stock dividends included in the loss per share calculation represent the accretion of the fair value of approximately $2,150,000 allocated to a non-cash beneficial conversion feature related to the Series D preferred stock issued in June 2013. The beneficial conversion feature was being amortized over the period from issuance through the earliest permitted conversion date in December 2013. The fair value of the warrants was determined using the Black-Scholes option pricing model. All common stock equivalents were excluded from the loss per share calculation for all periods presented because the impact is antidilutive. At September 30, 2014, options (3,813,000), restricted stock units (910,000), warrants (27,676,000), Series D preferred stock (6,125,000) and Series B preferred stock (250,000) were outstanding. At September 30, 2013, options (3,274,000), restricted stock units (573,000), warrants (25,516,000), Series D preferred stock (6,125,000) and Series B preferred stock (250,000) were outstanding. | |||||||||
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||
3 | Share-Based Compensation | ||||||||||||||||
Share-based compensation by category is as follows (in thousands): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
SG&A | $ | 124 | $ | 70 | |||||||||||||
Product development | 10 | 10 | |||||||||||||||
Cost of revenues | 5 | 5 | |||||||||||||||
Share-based compensation expense | $ | 139 | $ | 85 | |||||||||||||
We computed the estimated fair values of all option-based compensation using the Black-Scholes option pricing model and the assumptions set forth in the following table. We based our estimate of the life of these options on historical averages over the past five years and estimates of expected future behavior. The expected volatility was based on the company’s historical stock volatility. The assumptions used in the company’s Black-Scholes calculations for fiscal 2015 and 2014 are as follows: | |||||||||||||||||
Risk Free | Dividend | Volatility | Weighted | ||||||||||||||
Interest Rate | Yield | Factor | Average | ||||||||||||||
Expected | |||||||||||||||||
Option Life | |||||||||||||||||
(Months) | |||||||||||||||||
Fiscal year 2015 | 0.6 | % | 0 | % | 84 | % | 48 | ||||||||||
Fiscal year 2014 | 1.4 | % | 0 | % | 89 | % | 48 | ||||||||||
The Black-Scholes option-pricing model requires the input of highly subjective assumptions. Because the company’s employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models may not provide a reliable single measure of the fair value of share-based compensation for employee stock options. Management will continue to assess the assumptions and methodologies used to calculate estimated fair value of share-based compensation as circumstances change and additional data becomes available over time, which may result in changes to these assumptions and methodologies. Such changes could materially impact the company’s fair value determination. | |||||||||||||||||
On August 23, 2011, the stockholders approved the 2011 Omnibus Equity Incentive Plan (the 2011 Plan). The 2011 Plan replaces the 2010 Employee Stock Option Plan and the 2001 Non-Executive Director Stock Option Plan. On May 1, 2014, the stockholders approved an amendment to the 2011 Plan to increase the number of shares of common stock available for issuance under the plan by 3,400,000 shares. As amended, the 2011 Plan provides for the issuance of up to 6,750,000 shares of the company’s common stock in connection with stock options, restricted share awards and other stock compensation vehicles. | |||||||||||||||||
Stock option activity under the company’s stock option plans for employees and non-executive directors for the period ended September 30, 2014 is as follows (in thousands, except per share and average life data): | |||||||||||||||||
Employees Information | Number of | Weighted | Weighted | Aggregate | |||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life (Years) | |||||||||||||||||
Outstanding June 30, 2014 | 2,619 | $ | 3.59 | ||||||||||||||
Granted | 397 | 0.69 | |||||||||||||||
Expired/forfeited | (139 | ) | 2.33 | ||||||||||||||
Outstanding September 30, 2014 | 2,877 | $ | 3.25 | 6.09 | $ | — | |||||||||||
Exercisable at September 30, 2014 | 1,525 | $ | 4.95 | 4.33 | $ | — | |||||||||||
Expected to vest at September 30, 2014 | 1,059 | $ | 1.33 | 8.05 | $ | — | |||||||||||
Non-Executive Director Information | Number of | Weighted | Weighted | Aggregate | |||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life (Years) | |||||||||||||||||
Outstanding, June 30, 2014 | 742 | $ | 1.39 | ||||||||||||||
Granted | 204 | 0.69 | |||||||||||||||
Expired | (10 | ) | 14.3 | ||||||||||||||
Outstanding September 30, 2014 | 936 | $ | 1.1 | 8.39 | $ | 2.0 | |||||||||||
Non-executive director options are granted at market price and vest on the grant date. | |||||||||||||||||
As of September 30, 2014, there were approximately 910,000 restricted stock units outstanding that were granted to employees as of January 15, 2013 and January 28, 2014 in connection with the company’s compensation modification program. These restricted stock units vest when the company achieves cash flow breakeven, as defined. | |||||||||||||||||
As of September 30, 2014, there was approximately $1,074,000 of total unrecognized compensation expense related to unvested share-based compensation arrangements which is expected to be recognized over a weighted-average period of 25 months. The remaining expense will be recognized if certain vesting conditions are met. | |||||||||||||||||
No options were exercised during the three month periods ended September 30, 2014 and 2013, respectively. The weighted average grant date fair value of options granted during the three month periods ended September 30, 2014 and 2013 was approximately $0.42 and $0.57, respectively. These values were calculated using the Black-Scholes option-pricing model. | |||||||||||||||||
The total fair value of options vested was $295,000 and $156,000 for the three month periods ended September 30, 2014 and 2013, respectively. | |||||||||||||||||
In December 2012, the board of directors agreed that all non-employee directors would receive all of their cash director compensation, including amounts payable for committee service, service as a committee chair and per meeting fees, in restricted shares of our common stock or stock options issued at fair value in accordance with the terms of the 2011 Plan for periods ending after December 2012. During the three months ended September 30, 2014, the company issued 35,417 shares of restricted common stock and 128,838 stock options (valued at approximately $99,000) to certain non-executive directors in connection with this program. In October 2014 the company issued 14,338 shares of restricted common stock (valued at approximately $9,800) to a director under this program for the quarter ended September 30, 2014. |
Marketable_Securities
Marketable Securities | 3 Months Ended | |
Sep. 30, 2014 | ||
Investments, Debt and Equity Securities [Abstract] | ' | |
Marketable Securities | ' | |
4 | Marketable Securities | |
At September 30, 2014, our marketable securities consisted primarily of money market investments. We classify our investments as “available for sale” and they have been recorded at cost which approximates fair value due to their variable interest rates. As a result, we have had no cumulative gross unrealized holding gains (losses) or gross realized gains (losses) from such investments through September 30, 2014. All income generated from these investments is recorded as interest income. |
Sale_of_NonCore_Assets
Sale of Non-Core Assets | 3 Months Ended | |
Sep. 30, 2014 | ||
Discontinued Operations and Disposal Groups [Abstract] | ' | |
Sale of Non-Core Assets | ' | |
5 | Sale of Non-Core Assets | |
In February 2014, the company completed the sale of all of its shares in Health Fusion, Inc. in connection with a share buy-back program initiated by Health Fusion. Net proceeds from the sale were approximately $851,000 and the company recorded a gain on the sale of this investment of approximately $101,000 which was included in other income for the quarter ended March 31, 2014. The company made its investment in Health Fusion in fiscal 2005. The investment was accounted for using the cost method and was included in other assets through the date of the sale. |
Inventory
Inventory | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory | ' | ||||||||
6 | Inventory | ||||||||
In connection with our manufacturing and sales plans for our telehealth service, the company has purchased certain components and contract manufacturing services for the production of the monitoring appliances. These inventory amounts are stated at the lower of cost or market and consist of the following (in thousands): | |||||||||
September 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
Purchased components | $ | 2,709 | $ | 2,735 | |||||
Finished goods | 189 | 202 | |||||||
Total inventory | $ | 2,898 | $ | 2,937 | |||||
Other_Intangible_Assets
Other Intangible Assets | 3 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Other Intangible Assets | ' | ||||||||||||||||||||||||||
7 | Other Intangible Assets | ||||||||||||||||||||||||||
The following table sets forth licenses, net and other intangible assets that are included in other assets as follows (in thousands): | |||||||||||||||||||||||||||
September 30, 2014 | June 30, 2014 | ||||||||||||||||||||||||||
Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | Useful Life | |||||||||||||||||||||
Carrying | Amortization | Value | Carrying | Amortization | Value | In Years | |||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||
Patents | $ | 356 | $ | 261 | $ | 95 | $ | 353 | $ | 256 | $ | 97 | 17 | ||||||||||||||
Trademarks | 207 | 100 | 107 | 205 | 97 | 108 | 20 | ||||||||||||||||||||
Acquired technologies | 72 | 72 | — | 72 | 72 | — | 2 | ||||||||||||||||||||
Licenses | 3,937 | 2,034 | 1,903 | 3,887 | 1,954 | 1,933 | 3 - 10 | ||||||||||||||||||||
Total | $ | 4,572 | $ | 2,467 | $ | 2,105 | $ | 4,517 | $ | 2,379 | $ | 2,138 | |||||||||||||||
As of September 30, 2014 and June 30, 2014 goodwill amounted to approximately $50,000 and is included in other assets. | |||||||||||||||||||||||||||
The company amortizes licenses and other intangible assets under the straight line method. Amortization expense was approximately $88,000 for the three months ended September 30, 2014 and $80,000 for the prior year period, respectively. Amortization expense for the next five fiscal years and thereafter is expected to be as follows (in thousands): | |||||||||||||||||||||||||||
2015 | $ | 295 | |||||||||||||||||||||||||
2016 | 401 | ||||||||||||||||||||||||||
2017 | 309 | ||||||||||||||||||||||||||
2018 | 287 | ||||||||||||||||||||||||||
2019 | 274 | ||||||||||||||||||||||||||
Thereafter | 539 | ||||||||||||||||||||||||||
$ | 2,105 | ||||||||||||||||||||||||||
Preferred_Stock
Preferred Stock | 3 Months Ended | |
Sep. 30, 2014 | ||
Equity [Abstract] | ' | |
Preferred Stock | ' | |
8 | Preferred Stock | |
As of September 30, 2014, there are 28,000 shares of Series B preferred stock outstanding. The Series B preferred stock was originally issued in a private financing in October 1999 and the conversion and redemption features were amended in October 2002 to provide for the rights and obligations described in this note. The company has the right to repurchase the outstanding Series B preferred stock at a redemption price equal to $25.00 per share, plus accrued and unpaid dividends. The holder of such shares has the right to convert shares of preferred stock into an aggregate of 250,000 shares of our common stock at a conversion rate of $2.80 per share. In the event the company elects to redeem these securities, the holder will be able to exercise its conversion right subsequent to the date that we issue a notice of redemption but prior to the deemed redemption date as would be set forth in such notice. At September 30, 2014, the company has accrued dividends in the amount of $17,500 which remain unpaid. | ||
As of September 30, 2014, there are 665,000 shares of Series D convertible preferred stock outstanding. The Series D preferred stock was issued in June 2013 in connection with the cancelation of an aggregate principal amount of $6,500,000 of senior secured notes and can be converted by the holders into an aggregate of 6,125,024 shares of common stock at an initial conversion rate of $1.08571 per share. The holders of such shares have the right to convert the preferred shares at anytime commencing on the six month anniversary of the issue date; however, the shares received upon conversion may not be offered or sold except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. The company has the right to repurchase the outstanding Series D preferred stock at a redemption price equal to $10.00 per share, plus accrued and unpaid dividends, beginning two years after issuance and to require holders to convert their Series D preferred stock beginning three years after issuance. Dividends on the Series D preferred stock accrue at a rate of 5% per annum and are payable semi-annually in cash or stock at the company’s option. At September 30, 2014, the company has accrued dividends of approximately $83,100 which remain unpaid. |
Shareholders_Equity
Shareholder's Equity | 3 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Shareholder's Equity | ' | ||||||||||||||||||||
9 | Shareholder’s Equity | ||||||||||||||||||||
The changes in shareholders’ equity for the three months ended September 30, 2014 are summarized as follows (in thousands): | |||||||||||||||||||||
Preferred | Common | Additional | Accumulated | Total | |||||||||||||||||
Stock | Stock | Paid-in | Deficit | Shareholders’ | |||||||||||||||||
Capital | Equity | ||||||||||||||||||||
Balance, June 30, 2014 | $ | 69 | $ | 39 | $ | 201,492 | $ | (196,382 | ) | $ | 5,218 | ||||||||||
Preferred stock dividends | (101 | ) | (101 | ) | |||||||||||||||||
Share-based compensation expense | 139 | 139 | |||||||||||||||||||
Issuance of common stock, net | 3 | 2,121 | 2,124 | ||||||||||||||||||
Restricted shares and stock options issued for services | 99 | 99 | |||||||||||||||||||
Warrants issued for services | 2 | 2 | |||||||||||||||||||
Net loss | (2,111 | ) | (2,111 | ) | |||||||||||||||||
Balance, September 30, 2014 | $ | 69 | $ | 42 | $ | 203,853 | $ | (198,594 | ) | $ | 5,370 | ||||||||||
During the three months ended September 30, 2014 there were no stock options or warrants exercised. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |
Sep. 30, 2014 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
Commitments and Contingencies | ' | |
10 | Commitments and Contingencies | |
On January 6, 2012, ExpressMD Solutions LLC, a subsidiary of the company, was served with a summons and complaint in a purported patent infringement lawsuit filed by Robert Bosch Healthcare Systems, Inc. (“Plaintiff”) against ExpressMD Solutions LLC, in the U.S. District Court for the Northern District of California, Case No. 5:12-cv-00068-JW. The complaint alleges that the ExpressMD Solutions’ “Electronic House Call” product infringes one or more claims of certain patents allegedly owned by the Plaintiff. Plaintiff is seeking injunctive relief, damages, punitive damages, interest, and other costs and expenses. ExpressMD Solutions filed an answer to the complaint on January 27, 2012 and asserted counterclaims seeking declarations that the patents are invalid and not infringed. On May 11, 2012, Plaintiff filed an amended complaint, dropping two patents previously asserted and adding one new patent. Express MD Solutions filed a motion to dismiss on June 15, 2012, which the Court granted with leave for Plaintiff to amend the complaint. Plaintiff filed a second amended complaint on July 24, 2012. Express MD filed an answer on August 7, 2012 and asserted counterclaims seeking invalidity of the patents and a declaration of non-infringement. On September 6, 2012 the case was reassigned to a new judge. An initial case management conference was held before the court on January 11, 2013. On January 21, 2013, Express MD Solutions filed a request for reexamination of one of the four patents asserted by Plaintiff. On February 27, 2013, the U.S. Patent and Trademark Office issued an order granting the request for reexamination. Additionally, two of the remaining three patents asserted by Plaintiff were placed into reexamination at the end of 2012 based on requests filed by a third party. The fourth patent asserted by Plaintiff expired on November 17, 2012. On January 22, 2013, Express MD Solutions filed a motion to stay the case pending the conclusion of the reexamination of Plaintiff’s three unexpired asserted patents. On January 22, 2013, Plaintiff filed a motion with the court for leave to file a third amended complaint and first amended infringement contentions. Express MD Solutions filed a response in opposition to Plaintiff’s motion on February 5, 2013 and on such date Plaintiff filed an opposition to Express MD Solutions’ motion to stay the case. On February 12, 2013, Express MD Solutions filed a reply in further support of its motion for a stay and Plaintiff filed a reply in further support of its motion to amend. On February 27, 2013, the Court granted Express MD Solutions’ motion and issued an order staying the case until final decision on all of the reexaminations, including through appeals. We believe that we have strong defenses to Plaintiff’s allegations and we intend to continue to vigorously defend the litigation. In addition, we intend to exercise our rights of set-off and indemnification as against EncounterCare Solutions, Inc. and the co-licensor to us of the patents in issue. Based on the facts of which we are currently aware, management believes that this matter will not have a material adverse effect on our financial position, results of operations, or cash flows. However, this matter is subject to inherent uncertainties and management’s assessment may change in the future. | ||
We are also subject to claims and litigation arising in the ordinary course of business. Our management considers that any liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the aggregate, would not have a material adverse effect on our consolidated financial position, results of operations or cash flows. | ||
We are not currently engaged in any other litigation which would be anticipated to have a material adverse effect on our financial condition or results of operations. | ||
We have entered into employment agreements with our chief executive officer and chief financial officer that specify the executive’s current compensation, benefits and perquisites, the executive’s entitlements upon termination of employment, and other employment rights and responsibilities. | ||
We have entered into various agreements by which we may be obligated to indemnify the other party with respect to certain matters. Generally, these indemnification provisions are included in contracts arising in the normal course of business under which we customarily agree to hold the indemnified party harmless against losses arising from a breach of representations related to such matters as intellectual property rights. Payments by us under such indemnification clauses are generally conditioned on the other party making a claim. Such claims are generally subject to challenge by us and to dispute resolution procedures specified in the particular contract. Further, our obligations under these arrangements may be limited in terms of time and/or amount and, in some instances, we may have recourse against third parties for certain payments made by us. It is not possible to predict the maximum potential amount of future payments under these indemnification agreements due to the conditional nature of our obligations and the unique facts of each particular agreement. Historically, we have not made any payments under these agreements that have been material individually or in the aggregate. As of September 30, 2014, we are not aware of any obligations under such indemnification agreements that would require material payments. |
Income_Taxes
Income Taxes | 3 Months Ended | |
Sep. 30, 2014 | ||
Income Tax Disclosure [Abstract] | ' | |
Income Taxes | ' | |
11 | Income Taxes | |
The company continues to fully recognize its tax benefits which are offset by a valuation allowance due to the uncertainty that the deferred tax assets will be realized. We will continue to evaluate the realizability of our net deferred tax assets and may record additional benefits in future earnings if we determine the realization of these assets is more likely than not. |
Other_Expense
Other Expense | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Other Income and Expenses [Abstract] | ' | ||||||||
Other Expense | ' | ||||||||
12 | Other Expense | ||||||||
Other expense consists of the following (in thousands): | |||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Amortization of debt discount | $ | — | $ | (94 | ) | ||||
Amortization of deferred financing costs | — | (1 | ) | ||||||
Total other expense | $ | — | $ | (95 | ) | ||||
The amortization of debt discount and deferred financing costs relates to $850,000 of senior secured notes that were repaid on October 31, 2013, the stated maturity date. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
13 | Fair Value Measurements | ||||||||||||||||
The company measures fair value for financial assets and liabilities in accordance with the provisions of the accounting guidance regarding fair value measurements. The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. A brief description of those three levels is as follows: | |||||||||||||||||
• Level 1: | Observable inputs such as quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
• Level 2: | Inputs other than quoted prices for identical assets or liabilities that are observable for the asset or liability, either directly or indirectly. | ||||||||||||||||
• Level 3: | Significant unobservable inputs. | ||||||||||||||||
The company’s assets subject to fair value measurements as of September 30, 2014 and June 30, 2014 are as follows (in thousands): | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Using Fair Value Hierarchy | |||||||||||||||||
Fair value | Level 1 | Level 2 | Level 3 | ||||||||||||||
September 30, 2014 | |||||||||||||||||
Current marketable securities - available for sale | $ | 210 | $ | 210 | $ | — | $ | — | |||||||||
Total | $ | 210 | $ | 210 | $ | — | $ | — | |||||||||
June 30, 2014 | |||||||||||||||||
Current marketable securities - available for sale | $ | 210 | $ | 210 | $ | — | $ | — | |||||||||
Total | $ | 210 | $ | 210 | $ | — | $ | — | |||||||||
For the three months ended September 30, 2014 and 2013, no gains or losses resulting from the fair value measurement of financial assets were included in the company’s earnings. | |||||||||||||||||
The accounting guidance regarding fair value measurements permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at fair value and establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar assets and liabilities. The company has elected not to measure any eligible items at fair value. |
Accounting_Standards_Adopted_i
Accounting Standards Adopted in Fiscal 2015 | 3 Months Ended | |||
Sep. 30, 2014 | ||||
Accounting Changes and Error Corrections [Abstract] | ' | |||
Accounting Standards Adopted in Fiscal 2015 | ' | |||
14 | Accounting Standards Adopted in Fiscal 2015 | |||
The company adopted the following FASB Accounting Standards Update (ASU) during fiscal 2014: | ||||
• | ASU No. 2013 - 11, Income Taxes (Topic 740) – Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward or Tax Credit Carryforward Exists (a consensus of FASB Emerging Issues Task Force), which finalizes Proposed ASU No. EITF-13C, and provides explicit guidance regarding the presentation in the statement of financial position of an unrecognized tax benefit when a net operating loss carryforward or a tax credit carryforward exists. In particular, ASU No. 2013-11 provides that an entity’s unrecognized tax benefit, or a portion of its unrecognized tax benefit, should be presented in its financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, with one exception. That exception states that, to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position, or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. As to the foregoing exception, ASU No. 2013-11 explains that the determination of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. For example, an entity should not evaluate whether the deferred tax asset expires before the statue of limitations on the tax position or whether the deferred tax asset may be used prior to the unrecognized tax benefit being settled. ASU No. 2013-11 applies prospectively to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists at the reporting date and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. | |||
The adoption of the ASU described above had no impact on the company’s results of operations or financial position. |
Common_Stock_Warrants
Common Stock Warrants | 3 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Common Stock Warrants | ' | ||||||||||||||||
15 | Common Stock Warrants | ||||||||||||||||
During the three months ended September 30, 2014 the company issued warrants to purchase shares of its common stock as follows: (i) 150,000 warrants to a consultant for services with an exercise price of $0.84 per share. These warrants vest monthly in arrears through March 31, 2015, if certain performance criteria are met, have a two year life and, subject to vesting requirements, are exercisable beginning six months after the grant date. The fair value of these warrants, as determined by the Black Scholes Model, is being charged to operations over the service period and (ii) as discussed more fully in Note 16 of Notes to Condensed Consolidated Financial Statements, the company issued warrants to purchase 1,003,678 shares of the company’s common stock in a registered direct offering in August 2014. | |||||||||||||||||
A schedule of common stock warrant activity is as follows (in thousands, except per share and average life data): | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Exercise Price | Remaining | Value | |||||||||||||||
Per Share | Contractual Life | ||||||||||||||||
(Years) | |||||||||||||||||
Outstanding, June 30, 2014 | 26,807 | $ | 1.26 | ||||||||||||||
Warrants issued | 1,154 | 0.88 | |||||||||||||||
Warrants expired | (285 | ) | 2.43 | ||||||||||||||
Outstanding, September 30, 2014 | 27,676 | $ | 1.23 | 3.35 | |||||||||||||
Exercisable, September 30, 2014 | 25,122 | $ | 1.26 | 3.22 | $ | — | |||||||||||
Recent_Equity_Offerings
Recent Equity Offerings | 3 Months Ended | |
Sep. 30, 2014 | ||
Text Block [Abstract] | ' | |
Recent Equity Offerings | ' | |
16 | Recent Equity Offerings | |
On August 28, 2014, the company completed a registered direct offering with certain institutional and/or accredited investors, including certain affiliated persons, of 3,041,454 shares of common stock and warrants to purchase up to an aggregate of 1,003,678 shares of common stock for gross proceeds of $2.17 million. The purchase price for a unit was $0.71, except that such purchase price per unit was $0.75125 for those investors that are our officers or directors. The warrants are exercisable for a period of 54 months commencing on the six month anniversary of the date on which they are issued and have an initial exercise price of $0.8875 per share. After deducting offering expenses, the company received net proceeds of approximately $2.12 million. The fair value of these warrants using the Black-Scholes option pricing model was approximately $0.42 million. One of the investors in the offering, Lazarus Investment Partners LLLP, was the beneficial owner of approximately 29.6% of our outstanding shares of common stock immediately prior to the offering, agreed to purchase $500,000 worth of shares of common stock and warrants (704,225 shares and 232,394 warrants). The manager of the general partner of Lazarus Investment Partners, LLLP, is the brother of Dr. Todd A. Borus, a member of our board of directors. Dr. Borus agreed to purchase 33,278 shares of common stock and 10,982 warrants (proceeds of $25,000). Further, Sarah Trent Harris, a family member of Charles C. Lucas, the Chairman of our Board, agreed to purchase 211,268 shares of common stock and 69,718 warrants (proceeds of $150,000). In addition, an entity controlled by Douglas B. Luce, the brother of J. David Luce, a member of our board of directors, agreed to purchase 352,113 shares of common stock and 116,197 warrants (proceeds of $250,000). O’Connell Benjamin, our chief executive officer agreed to purchase 133,111 shares of common stock and 43,927 warrants (proceeds of $100,000) and William A. Marshall, our chief financial officer, agreed to purchase 66,556 shares of common stock and 21,963 warrants (proceeds of $50,000). |
Loss_Per_Share_Tables
Loss Per Share (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Calculation of Basic and Diluted Loss Per Share | ' | ||||||||
The following table sets forth the calculation of basic and diluted loss per share for the periods presented (in thousands, except per share data): | |||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Net loss | $ | (2,111 | ) | $ | (1,874 | ) | |||
Preferred stock dividends | (101 | ) | (100 | ) | |||||
Deemed preferred stock dividends | — | (1,074 | ) | ||||||
Net loss applicable to common shareholders | $ | (2,212 | ) | $ | (3,048 | ) | |||
Weighted average shares | 39,405 | 35,360 | |||||||
Basic and diluted loss per common share | $ | (0.06 | ) | $ | (0.09 | ) |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Summary of Share-Based Compensation Expense by Category | ' | ||||||||||||||||
Share-based compensation by category is as follows (in thousands): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
SG&A | $ | 124 | $ | 70 | |||||||||||||
Product development | 10 | 10 | |||||||||||||||
Cost of revenues | 5 | 5 | |||||||||||||||
Share-based compensation expense | $ | 139 | $ | 85 | |||||||||||||
Summary of Estimated Fair Value of Share-Based Compensation Using Black-Scholes Option Pricing Model and Assumptions | ' | ||||||||||||||||
The assumptions used in the company’s Black-Scholes calculations for fiscal 2015 and 2014 are as follows: | |||||||||||||||||
Risk Free | Dividend | Volatility | Weighted | ||||||||||||||
Interest Rate | Yield | Factor | Average | ||||||||||||||
Expected | |||||||||||||||||
Option Life | |||||||||||||||||
(Months) | |||||||||||||||||
Fiscal year 2015 | 0.6 | % | 0 | % | 84 | % | 48 | ||||||||||
Fiscal year 2014 | 1.4 | % | 0 | % | 89 | % | 48 | ||||||||||
Summary of Stock Option Activity under Stock Option Plans for Employees and Non-Executive Directors | ' | ||||||||||||||||
Stock option activity under the company’s stock option plans for employees and non-executive directors for the period ended September 30, 2014 is as follows (in thousands, except per share and average life data): | |||||||||||||||||
Employees Information | Number of | Weighted | Weighted | Aggregate | |||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life (Years) | |||||||||||||||||
Outstanding June 30, 2014 | 2,619 | $ | 3.59 | ||||||||||||||
Granted | 397 | 0.69 | |||||||||||||||
Expired/forfeited | (139 | ) | 2.33 | ||||||||||||||
Outstanding September 30, 2014 | 2,877 | $ | 3.25 | 6.09 | $ | — | |||||||||||
Exercisable at September 30, 2014 | 1,525 | $ | 4.95 | 4.33 | $ | — | |||||||||||
Expected to vest at September 30, 2014 | 1,059 | $ | 1.33 | 8.05 | $ | — | |||||||||||
Non-Executive Director Information | Number of | Weighted | Weighted | Aggregate | |||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life (Years) | |||||||||||||||||
Outstanding, June 30, 2014 | 742 | $ | 1.39 | ||||||||||||||
Granted | 204 | 0.69 | |||||||||||||||
Expired | (10 | ) | 14.3 | ||||||||||||||
Outstanding September 30, 2014 | 936 | $ | 1.1 | 8.39 | $ | 2.0 | |||||||||||
Inventory_Tables
Inventory (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory | ' | ||||||||
These inventory amounts are stated at the lower of cost or market and consist of the following (in thousands): | |||||||||
September 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
Purchased components | $ | 2,709 | $ | 2,735 | |||||
Finished goods | 189 | 202 | |||||||
Total inventory | $ | 2,898 | $ | 2,937 | |||||
Other_Intangible_Assets_Tables
Other Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Net Licenses and Other Intangible Assets | ' | ||||||||||||||||||||||||||
The following table sets forth licenses, net and other intangible assets that are included in other assets as follows (in thousands): | |||||||||||||||||||||||||||
September 30, 2014 | June 30, 2014 | ||||||||||||||||||||||||||
Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | Useful Life | |||||||||||||||||||||
Carrying | Amortization | Value | Carrying | Amortization | Value | In Years | |||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||
Patents | $ | 356 | $ | 261 | $ | 95 | $ | 353 | $ | 256 | $ | 97 | 17 | ||||||||||||||
Trademarks | 207 | 100 | 107 | 205 | 97 | 108 | 20 | ||||||||||||||||||||
Acquired technologies | 72 | 72 | — | 72 | 72 | — | 2 | ||||||||||||||||||||
Licenses | 3,937 | 2,034 | 1,903 | 3,887 | 1,954 | 1,933 | 3 - 10 | ||||||||||||||||||||
Total | $ | 4,572 | $ | 2,467 | $ | 2,105 | $ | 4,517 | $ | 2,379 | $ | 2,138 | |||||||||||||||
Amortization Expense | ' | ||||||||||||||||||||||||||
Amortization expense for the next five fiscal years and thereafter is expected to be as follows (in thousands): | |||||||||||||||||||||||||||
2015 | $ | 295 | |||||||||||||||||||||||||
2016 | 401 | ||||||||||||||||||||||||||
2017 | 309 | ||||||||||||||||||||||||||
2018 | 287 | ||||||||||||||||||||||||||
2019 | 274 | ||||||||||||||||||||||||||
Thereafter | 539 | ||||||||||||||||||||||||||
$ | 2,105 | ||||||||||||||||||||||||||
Shareholders_Equity_Tables
Shareholder's Equity (Tables) | 3 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Changes in Shareholders' Equity | ' | ||||||||||||||||||||
The changes in shareholders’ equity for the three months ended September 30, 2014 are summarized as follows (in thousands): | |||||||||||||||||||||
Preferred | Common | Additional | Accumulated | Total | |||||||||||||||||
Stock | Stock | Paid-in | Deficit | Shareholders’ | |||||||||||||||||
Capital | Equity | ||||||||||||||||||||
Balance, June 30, 2014 | $ | 69 | $ | 39 | $ | 201,492 | $ | (196,382 | ) | $ | 5,218 | ||||||||||
Preferred stock dividends | (101 | ) | (101 | ) | |||||||||||||||||
Share-based compensation expense | 139 | 139 | |||||||||||||||||||
Issuance of common stock, net | 3 | 2,121 | 2,124 | ||||||||||||||||||
Restricted shares and stock options issued for services | 99 | 99 | |||||||||||||||||||
Warrants issued for services | 2 | 2 | |||||||||||||||||||
Net loss | (2,111 | ) | (2,111 | ) | |||||||||||||||||
Balance, September 30, 2014 | $ | 69 | $ | 42 | $ | 203,853 | $ | (198,594 | ) | $ | 5,370 | ||||||||||
Other_Expense_Tables
Other Expense (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Other Income and Expenses [Abstract] | ' | ||||||||
Summary of Other Expense | ' | ||||||||
Other expense consists of the following (in thousands): | |||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Amortization of debt discount | $ | — | $ | (94 | ) | ||||
Amortization of deferred financing costs | — | (1 | ) | ||||||
Total other expense | $ | — | $ | (95 | ) | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Assets Subject to Fair Value Measurements | ' | ||||||||||||||||
The company’s assets subject to fair value measurements as of September 30, 2014 and June 30, 2014 are as follows (in thousands): | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Using Fair Value Hierarchy | |||||||||||||||||
Fair value | Level 1 | Level 2 | Level 3 | ||||||||||||||
September 30, 2014 | |||||||||||||||||
Current marketable securities - available for sale | $ | 210 | $ | 210 | $ | — | $ | — | |||||||||
Total | $ | 210 | $ | 210 | $ | — | $ | — | |||||||||
June 30, 2014 | |||||||||||||||||
Current marketable securities - available for sale | $ | 210 | $ | 210 | $ | — | $ | — | |||||||||
Total | $ | 210 | $ | 210 | $ | — | $ | — | |||||||||
Common_Stock_Warrants_Tables
Common Stock Warrants (Tables) | 3 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Schedule of Common Stock Warrant Activity | ' | ||||||||||||||||
A schedule of common stock warrant activity is as follows (in thousands, except per share and average life data): | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Exercise Price | Remaining | Value | |||||||||||||||
Per Share | Contractual Life | ||||||||||||||||
(Years) | |||||||||||||||||
Outstanding, June 30, 2014 | 26,807 | $ | 1.26 | ||||||||||||||
Warrants issued | 1,154 | 0.88 | |||||||||||||||
Warrants expired | (285 | ) | 2.43 | ||||||||||||||
Outstanding, September 30, 2014 | 27,676 | $ | 1.23 | 3.35 | |||||||||||||
Exercisable, September 30, 2014 | 25,122 | $ | 1.26 | 3.22 | $ | — | |||||||||||
Loss_Per_Share_Calculation_of_
Loss Per Share - Calculation of Basic and Diluted Loss Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Net loss | ($2,111) | ($1,874) |
Preferred stock dividends | -101 | -100 |
Deemed preferred stock dividends | ' | -1,074 |
Net loss applicable to common shareholders | ($2,212) | ($3,048) |
Weighted average shares | 39,405 | 35,360 |
Basic and diluted loss per common share | ($0.06) | ($0.09) |
Loss_Per_Share_Additional_Info
Loss Per Share - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | |
Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Options [Member] | ' | ' | ' |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' |
Antidilutive securities outstanding | ' | -3,813,000 | -3,274,000 |
Restricted Stock Units [Member] | ' | ' | ' |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' |
Antidilutive securities outstanding | ' | -910,000 | -573,000 |
Warrants [Member] | ' | ' | ' |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' |
Antidilutive securities outstanding | ' | -27,676,000 | -25,516,000 |
Series D Preferred Stock [Member] | ' | ' | ' |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' |
Accretion of the fair value allocated to a non-cash beneficial conversion feature | $2,150,000 | ' | ' |
Antidilutive securities outstanding | ' | -6,125,000 | -6,125,000 |
Series B Preferred Stock [Member] | ' | ' | ' |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' |
Antidilutive securities outstanding | ' | -250,000 | -250,000 |
ShareBased_Compensation_Summar
Share-Based Compensation - Summary of Share-Based Compensation Expense by Category (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-based compensation expense | $139 | $85 |
SG&A [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-based compensation expense | 124 | 70 |
Product Development [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-based compensation expense | 10 | 10 |
Cost of Revenues [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-based compensation expense | $5 | $5 |
ShareBased_Compensation_Summar1
Share-Based Compensation - Summary of Estimated Fair Value of Share-Based Compensation using Black-Scholes Option Pricing Model and Assumptions (Detail) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Risk Free Interest Rate | 0.60% | 1.40% |
Dividend Yield | 0.00% | 0.00% |
Volatility Factor | 84.00% | 89.00% |
Weighted Average Expected Option Life (Months) | '48 months | '48 months |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 1 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | 1-May-14 | 1-May-14 | Sep. 30, 2014 | Oct. 31, 2014 | |
Restricted Stock Units [Member] | 2011 Plan [Member] | 2011 Plan [Member] | 2011 Plan [Member] | 2011 Plan [Member] | |||
Non-Executive [Member] | Subsequent Event [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Common stock shares available for issuance | ' | ' | ' | ' | 6,750,000 | ' | ' |
Increase the number of shares of common stock available for issuance | ' | ' | ' | 3,400,000 | ' | ' | ' |
Restricted stock units outstanding | ' | ' | 910,000 | ' | ' | ' | ' |
Unrecognized compensation expense related to unvested share-based compensation arrangements | $1,074,000 | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense expected to be recognized over a weighted average period | '25 months | ' | ' | ' | ' | ' | ' |
Number of options exercised | 0 | 0 | ' | ' | ' | ' | ' |
Weighted average grant date fair value of options granted | $0.42 | $0.57 | ' | ' | ' | ' | ' |
Total fair value of options vested | 295,000 | 156,000 | ' | ' | ' | ' | ' |
Restricted common stock shares issued | ' | ' | ' | ' | ' | 35,417 | 14,338 |
Stock options issued | ' | ' | ' | ' | ' | 128,838 | ' |
Fair value of restricted common stock issued | ' | ' | ' | ' | ' | $99,000 | $9,800 |
ShareBased_Compensation_Summar2
Share-Based Compensation - Summary of Stock Option Activity under Stock Option Plans for Employees and Non-Executive Directors (Detail) (USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 |
Employees Information [Member] | ' |
Number of Options | ' |
Outstanding, Balance | 2,619 |
Granted | 397 |
Expired/forfeited | -139 |
Outstanding, Balance | 2,877 |
Exercisable, Balance | 1,525 |
Expected to vest, Balance | 1,059 |
Weighted Average Exercise Price | ' |
Outstanding, Balance | $3.59 |
Granted | $0.69 |
Expired/forfeited | $2.33 |
Outstanding, Balance | $3.25 |
Exercisable, Balance | $4.95 |
Expected to vest, Balance | $1.33 |
Weighted Average Remaining Contractual Life (Years) | ' |
Outstanding, Balance | '6 years 1 month 2 days |
Exercisable, Balance | '4 years 3 months 29 days |
Expected to vest, Balance | '8 years 0 months 18 days |
Aggregate Intrinsic Value | ' |
Outstanding, Balance | ' |
Exercisable, Balance | ' |
Expected to vest, Balance | ' |
Non-Executive Director Information [Member] | ' |
Number of Options | ' |
Outstanding, Balance | 742 |
Granted | 204 |
Expired | -10 |
Outstanding, Balance | 936 |
Weighted Average Exercise Price | ' |
Outstanding, Balance | $1.39 |
Granted | $0.69 |
Expired | $14.30 |
Outstanding, Balance | $1.10 |
Weighted Average Remaining Contractual Life (Years) | ' |
Outstanding, Balance | '8 years 4 months 21 days |
Aggregate Intrinsic Value | ' |
Outstanding, Balance | $2 |
Marketable_Securities_Addition
Marketable Securities - Additional Information (Detail) (USD $) | 3 Months Ended |
Sep. 30, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ' |
Cumulative gross unrealized holding gains (losses) | $0 |
Gross realized gains (losses) | $0 |
Sale_of_NonCore_Assets_Additio
Sale of Non-Core Assets - Additional Information (Detail) (Health Fusion Inc [Member], USD $) | 1 Months Ended |
Feb. 28, 2014 | |
Health Fusion Inc [Member] | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' |
Net proceeds from sale | $851,000 |
Gain on sale of investment | $101,000 |
Inventory_Schedule_of_Inventor
Inventory - Schedule of Inventory (Detail) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Purchased components | $2,709 | $2,735 |
Finished goods | 189 | 202 |
Total inventory | $2,898 | $2,937 |
Other_Intangible_Assets_Net_Li
Other Intangible Assets - Net Licenses and Other Intangible Assets (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 |
Goodwill And Other Intangibles [Line Items] | ' | ' |
Gross Carrying Amount | $4,572 | $4,517 |
Accumulated Amortization | 2,467 | 2,379 |
Net Book Value | 2,105 | 2,138 |
Patents [Member] | ' | ' |
Goodwill And Other Intangibles [Line Items] | ' | ' |
Gross Carrying Amount | 356 | 353 |
Accumulated Amortization | 261 | 256 |
Net Book Value | 95 | 97 |
Useful Life In Years | '17 years | ' |
Trademarks [Member] | ' | ' |
Goodwill And Other Intangibles [Line Items] | ' | ' |
Gross Carrying Amount | 207 | 205 |
Accumulated Amortization | 100 | 97 |
Net Book Value | 107 | 108 |
Useful Life In Years | '20 years | ' |
Acquired Technologies [Member] | ' | ' |
Goodwill And Other Intangibles [Line Items] | ' | ' |
Gross Carrying Amount | 72 | 72 |
Accumulated Amortization | 72 | 72 |
Useful Life In Years | '2 years | ' |
Licenses [Member] | ' | ' |
Goodwill And Other Intangibles [Line Items] | ' | ' |
Gross Carrying Amount | 3,937 | 3,887 |
Accumulated Amortization | 2,034 | 1,954 |
Net Book Value | $1,903 | $1,933 |
Minimum [Member] | Licenses [Member] | ' | ' |
Goodwill And Other Intangibles [Line Items] | ' | ' |
Useful Life In Years | '3 years | ' |
Maximum [Member] | Licenses [Member] | ' | ' |
Goodwill And Other Intangibles [Line Items] | ' | ' |
Useful Life In Years | '10 years | ' |
Other_Intangible_Assets_Additi
Other Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Goodwill | $50,000 | ' | $50,000 |
Amortization expense | $88,000 | $80,000 | ' |
Other_Intangible_Assets_Amorti
Other Intangible Assets - Amortization Expense (Detail) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
2015 | $295 | ' |
2016 | 401 | ' |
2017 | 309 | ' |
2018 | 287 | ' |
2019 | 274 | ' |
Thereafter | 539 | ' |
Net Book Value | $2,105 | $2,138 |
Preferred_Stock_Additional_Inf
Preferred Stock - Additional Information (Detail) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Jun. 30, 2014 | |
Series B Preferred Stock [Member] | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock shares outstanding | 28,000 | ' |
Redemption price of preferred stock per share | $25 | ' |
Conversion rate of common stock per share | $2.80 | ' |
Conversion of the preferred stock and accrued dividends into common stock shares | 250,000 | ' |
Accrued dividend | $17,500 | ' |
Series D Preferred Stock [Member] | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Preferred stock shares outstanding | 665,000 | 665,000 |
Redemption price of preferred stock per share | $10 | ' |
Conversion rate of common stock per share | $1.09 | ' |
Conversion of the preferred stock and accrued dividends into common stock shares | 6,125,024 | ' |
Accrued dividend | 83,100 | ' |
Accrued dividend rate | 5.00% | ' |
Preferred stock repurchased period | '2 years | ' |
Preferred stock conversion period | '3 years | ' |
Series D Preferred Stock [Member] | Senior Secured Notes [Member] | ' | ' |
Preferred Stock [Line Items] | ' | ' |
Aggregate principal amount of senior secured notes | $6,500,000 | ' |
Shareholders_Equity_Changes_in
Shareholder's Equity - Changes in Shareholders' Equity (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Stockholders Equity [Line Items] | ' | ' |
Beginning balance | $5,218 | ' |
Preferred stock dividends | -101 | -100 |
Share-based compensation expense | 139 | ' |
Issuance of common stock, net | 2,124 | ' |
Restricted shares and stock options issued for services | 99 | ' |
Warrants issued for services | 2 | ' |
Net loss | -2,111 | -1,874 |
Ending balance | 5,370 | ' |
Preferred Stock [Member] | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Beginning balance | 69 | ' |
Preferred stock dividends | ' | ' |
Share-based compensation expense | ' | ' |
Issuance of common stock, net | ' | ' |
Restricted shares and stock options issued for services | ' | ' |
Warrants issued for services | ' | ' |
Net loss | ' | ' |
Ending balance | 69 | ' |
Common Stock [Member] | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Beginning balance | 39 | ' |
Preferred stock dividends | ' | ' |
Share-based compensation expense | ' | ' |
Issuance of common stock, net | 3 | ' |
Restricted shares and stock options issued for services | ' | ' |
Warrants issued for services | ' | ' |
Net loss | ' | ' |
Ending balance | 42 | ' |
Additional Paid-in Capital [Member] | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Beginning balance | 201,492 | ' |
Preferred stock dividends | ' | ' |
Share-based compensation expense | 139 | ' |
Issuance of common stock, net | 2,121 | ' |
Restricted shares and stock options issued for services | 99 | ' |
Warrants issued for services | 2 | ' |
Ending balance | 203,853 | ' |
Accumulated Deficit [Member] | ' | ' |
Stockholders Equity [Line Items] | ' | ' |
Beginning balance | -196,382 | ' |
Preferred stock dividends | -101 | ' |
Share-based compensation expense | ' | ' |
Issuance of common stock, net | ' | ' |
Restricted shares and stock options issued for services | ' | ' |
Warrants issued for services | ' | ' |
Net loss | -2,111 | ' |
Ending balance | ($198,594) | ' |
Shareholders_Equity_Additional
Shareholder's Equity - Additional Information (Detail) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Equity [Abstract] | ' | ' |
Stock options exercised | 0 | 0 |
Warrants exercised | 0 | ' |
Other_Expense_Summary_of_Other
Other Expense - Summary of Other Expense (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Other Income and Expenses [Abstract] | ' | ' |
Amortization of debt discount | ' | ($94) |
Amortization of deferred financing costs | ' | -1 |
Total other expense | ' | ($95) |
Other_Expense_Additional_Infor
Other Expense - Additional Information (Detail) (Senior Secured Notes [Member], USD $) | 0 Months Ended | 3 Months Ended |
Oct. 31, 2013 | Sep. 30, 2014 | |
Senior Secured Notes [Member] | ' | ' |
Component of Other Income, Nonoperating [Abstract] | ' | ' |
Senior secured notes repaid | $850,000 | ' |
Senior secured notes stated maturity date | ' | 31-Oct-13 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets Subject to Fair Value Measurements (Detail) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Current marketable securities - available for sale | $210 | $210 |
Marketable Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Current marketable securities - available for sale | 210 | 210 |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Current marketable securities - available for sale | 210 | 210 |
Level 1 [Member] | Marketable Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Current marketable securities - available for sale | 210 | 210 |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Current marketable securities - available for sale | ' | ' |
Level 2 [Member] | Marketable Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Current marketable securities - available for sale | ' | ' |
Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Current marketable securities - available for sale | ' | ' |
Level 3 [Member] | Marketable Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Current marketable securities - available for sale | ' | ' |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Fair Value Disclosures [Abstract] | ' | ' |
Gains or losses resulting from fair value measurement of financial assets included in earnings | $0 | $0 |
Common_Stock_Warrants_Addition
Common Stock Warrants - Additional Information (Detail) | 3 Months Ended | 0 Months Ended |
Sep. 30, 2014 | Aug. 28, 2014 | |
Institutional Investors [Member] | ||
Class of Warrant or Right [Line Items] | ' | ' |
Warrants issued to consultant for services under condition one | 150,000 | ' |
Exercise price per share under condition one | 0.84 | ' |
Warrants vesting start date | 31-Mar-15 | ' |
Warrants life under condition one | '2 years | ' |
Issuance of warrants to purchase common stock | ' | 1,003,678 |
Common_Stock_Warrants_Schedule
Common Stock Warrants - Schedule of Common Stock Warrant Activity (Detail) (Warrants [Member], USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 |
Warrants [Member] | ' |
Number of Shares | ' |
Outstanding, June 30, 2014 | 26,807 |
Warrants issued | 1,154 |
Warrants expired | -285 |
Outstanding, September 30, 2014 | 27,676 |
Exercisable, September 30, 2014 | 25,122 |
Weighted Average Exercise Price Per Share | ' |
Outstanding, June 30, 2014 | $1.26 |
Warrants issued | $0.88 |
Warrants expired | $2.43 |
Outstanding, September 30, 2014 | $1.23 |
Exercisable, September 30, 2014 | $1.26 |
Weighted Average Remaining Contractual Life (Years) | ' |
Outstanding, September 30, 2014 | '3 years 4 months 6 days |
Exercisable, September 30, 2014 | '3 years 2 months 19 days |
Aggregate Intrinsic Value | ' |
Exercisable, September 30, 2014 | ' |
Recent_Equity_Offerings_Additi
Recent Equity Offerings - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | ||
Aug. 28, 2014 | Sep. 30, 2014 | Aug. 28, 2014 | Jun. 30, 2014 | |
Conversion of Stock [Line Items] | ' | ' | ' | ' |
Issuance of company's common stock | ' | 41,587,000 | ' | 38,511,000 |
Gross proceeds from issuance of common stock and warrants | $2,170,000 | ' | ' | ' |
Purchase price per unit | ' | ' | $0.71 | ' |
Warrants exercisable period | '54 months | ' | ' | ' |
Exercise price of warrants | ' | ' | $0.89 | ' |
Warrants exercisable period from issuance date | '6 months | ' | ' | ' |
Net proceeds from issuance of warrants | 2,120,000 | ' | ' | ' |
Proceeds from sale of common stock and warrants | ' | 2,124,000 | ' | ' |
Warrants [Member] | ' | ' | ' | ' |
Conversion of Stock [Line Items] | ' | ' | ' | ' |
Fair value of warrants | 420,000 | ' | ' | ' |
Accredited Investor [Member] | ' | ' | ' | ' |
Conversion of Stock [Line Items] | ' | ' | ' | ' |
Issuance of company's common stock | 3,041,454 | ' | 3,041,454 | ' |
Institutional Investors [Member] | ' | ' | ' | ' |
Conversion of Stock [Line Items] | ' | ' | ' | ' |
Issuance of warrants to purchase common stock | 1,003,678 | ' | ' | ' |
Director [Member] | ' | ' | ' | ' |
Conversion of Stock [Line Items] | ' | ' | ' | ' |
Issuance of company's common stock | ' | ' | 33,278 | ' |
Issuance of warrants to purchase common stock | 10,982 | ' | ' | ' |
Purchase price per unit | ' | ' | $0.75 | ' |
Proceeds from sale of common stock and warrants | 25,000 | ' | ' | ' |
Lazarus Investment Partners LLLP [Member] | ' | ' | ' | ' |
Conversion of Stock [Line Items] | ' | ' | ' | ' |
Issuance of company's common stock | ' | ' | 704,225 | ' |
Issuance of warrants to purchase common stock | 232,394 | ' | ' | ' |
Percentage of ownership on common stock | 29.60% | ' | ' | ' |
Purchase amount | 500,000 | ' | ' | ' |
Board of Directors Chairman [Member] | ' | ' | ' | ' |
Conversion of Stock [Line Items] | ' | ' | ' | ' |
Issuance of company's common stock | ' | ' | 211,268 | ' |
Issuance of warrants to purchase common stock | 69,718 | ' | ' | ' |
Proceeds from sale of common stock and warrants | 150,000 | ' | ' | ' |
Director One [Member] | ' | ' | ' | ' |
Conversion of Stock [Line Items] | ' | ' | ' | ' |
Issuance of company's common stock | ' | ' | 352,113 | ' |
Issuance of warrants to purchase common stock | 116,197 | ' | ' | ' |
Proceeds from sale of common stock and warrants | 250,000 | ' | ' | ' |
Chief Executive Officer [Member] | ' | ' | ' | ' |
Conversion of Stock [Line Items] | ' | ' | ' | ' |
Issuance of company's common stock | ' | ' | 133,111 | ' |
Issuance of warrants to purchase common stock | 43,927 | ' | ' | ' |
Proceeds from sale of common stock and warrants | 100,000 | ' | ' | ' |
Chief Financial Officer [Member] | ' | ' | ' | ' |
Conversion of Stock [Line Items] | ' | ' | ' | ' |
Issuance of company's common stock | ' | ' | 66,556 | ' |
Issuance of warrants to purchase common stock | 21,963 | ' | ' | ' |
Proceeds from sale of common stock and warrants | $50,000 | ' | ' | ' |